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UNCLAS SECTION 01 OF 08 TOKYO 000352 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; 
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; 
SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; 
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
TOKYO 00000352  001.2 OF 008 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 01//07 
 
 
INDEX: 
 
(1) Regular Diet session to start today: Ruling bloc to focus on 
education issue; Opposition parties on social disparity issue; 
Mud-slinging likely over "politics and money" issue 
 
(2) Calls for Upper House Vice President Tsunoda's resignation 
growing stronger in Minshuto 
 
(3) Former Agriculture Minister Norota recorded office expenses in 
political funds reports although he used secretary's home as fund 
management office; Defense Minister Kyuma failed to notify 
relocations of political organizations 
 
(4) Cuts in medical equipment expenses: Narrow differences between 
domestic and foreign prices 
 
(5) Paratroop training planned at Kadena 
 
(6) Japan, US to test IC tag-based traceability system for freight 
containers as security measure 
 
(7) TOP HEADLINES 
 
(8) EDITORIALS 
 
(9) Prime Minister's schedule, January 24 
 
ARTICLES: 
 
(1) Regular Diet session to start today: Ruling bloc to focus on 
education issue; Opposition parties on social disparity issue; 
Mud-slinging likely over "politics and money" issue 
 
NIHON KEIZAI (Page 2) (Slightly abridged) 
January 25, 2007 
 
With the convocation of the regular session of the Diet today, a 
150-day war of words will start. With the Upper House election this 
summer in mind, the government and the ruling parties will lose no 
time in having the Diet pass bills related to the Constitution, 
education and employment while underscoring the need to tackle those 
issues. The opposition camp is gearing up to criticize the stances 
of the government and the ruling camp in the income-gap policy area. 
A fierce contest is expected to occur right from the outset of the 
session. An expected clash over the "politics and money" issue 
concerning could develop into a mud-slinging contest since both the 
ruling and opposition camps have been exposed as involved in shady 
fund-management activities. 
 
Dark cloud over national referendum bill 
 
LDP Secretary General Hidenao Nakagawa is attaching importance to 
educational revitalization, an issue to which the prime minister 
gives first consideration. The government plans to submit three 
educational reform-related bills, including the introduction of a 
teaching-license renewal system. The prime minister asked 
cooperation from Nakagawa and New Komeito Secretary General Kazuo 
Kitagaga on the phone after the meeting of the Educational Reform 
Council yesterday. 
 
Passage of the national referendum bill that will set the procedures 
for amending the Constitution, a subject to which the prime minister 
 
TOKYO 00000352  002.2 OF 008 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 01//07 
 
has shown eagerness, is another top priority issue for the LDP. On 
the other hand, the New Komeito is placing emphasis on laws related 
to revisions to employment rules, such as a hike in minimum wages. 
 
Opposition parties are in agreement on their intention to focus on 
the issue of correcting income disparity. The Democratic Party of 
Japan (DPJ or Minshuto) is preparing to submit a disparity 
correction emergency measures bill featuring a call for the same 
wages for the same work. It also intends to pursue government 
office-led bid-rigging. Regarding this issue, the Fair Trade 
Commission (FTC) has recognized bid-rigging carried out by officials 
of the Land, Infrastructure and Transport. 
 
DPJ head Ichiro Ozawa met Secretary General Yukio Hatoyama the same 
day and revealed his intention to make a careful judgment on the 
national referendum bill while monitoring the LDP's approach. He 
said, "If there are differences in views, there is no need to rush 
to reach a judgment. Debate on social disparities and people's life 
is more important." 
 
Many members of the DPJ, which has held talks to the LDP plan along 
with that party, support that bill. However, the Social Democratic 
Party and the People's New Party want to prevent its enactment, 
arguing that it will only credit the Abe cabinet. The political 
judgment of Ozawa, who attaches importance to election cooperation 
with the two parties, has apparently constrained Hatoyama. 
 
DPJ's force of argument weakening 
 
Senior opposition party members met at a Tokyo hotel and agreed on 
the perception "politics and money issues will inevitably become a 
major subject of debate right from the beginning of the Diet 
session." 
 
Opposition parties are envisaging a scenario in which it will drive 
the prime minister into the corner thoroughly pursuing former State 
Minister for Administrative Reform, who quit late last year over 
shady accounting and Agriculture Minister Toshikatsu Matsuoka, who 
reported a large amount of office expenses - both were appointed by 
the prime minister. 
 
However, the force of the DPJ's argument is beginning to weaken 
following the emergence of suspicion that House of Councillors Vice 
President Giichi Tsunoda, who temporarily left the DPJ to serve in 
this post, might have omitted political funds donations from his 
political funds payment balance report. 
 
Social Democratic Party head Mizuho Fukushima during a press 
conference the same day snubbed Tsunoda, "If what has been reported 
is correct, Mr. Tsunoda should step down as vice president." Some 
participants in the DPJ's executive meeting said, "Mr. Tsunoda 
should fulfill his accountability submitting an accounting book, if 
he has one." 
 
The DPJ is saddled with another issue of its head Ozawa reporting 
expenses for the acquisition of a high amount of land and buildings 
as office expenses. The LDP has started debate at the compliance 
taskforce of its Party Reform Implementation Headquarters on whether 
the acquisition of real property by Ozawa's fund management 
organization was appropriate or not. 
 
(2) Calls for Upper House Vice President Tsunoda's resignation 
growing stronger in Minshuto 
 
TOKYO 00000352  003.2 OF 008 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 01//07 
 
 
MAINICHI (Page 1) (Full) 
Evening, January 25, 2007 
 
There are allegations that the political fund management 
organization of House of Councilors Vice President Giichi Tsunoda 
failed to include in Tsunoda's report on political funds to the 
government 25 million yen it had received for the 2001 Upper House 
election. Referring to the allegations in a meeting this morning of 
the party members from both chambers of the Diet, Minshuto 
(Democratic Party of Japan) Secretary General Yukio Hatoyama 
revealed his intention of putting an end to the matter as quickly as 
possible, saying, "It is necessary to quickly dealing with the 
matter. I want you to entrust it to the executive." Concerning a 
possible negative impact on the regular Diet session in which the 
politics and money issue will become a main issue, calls for 
Tsunoda's resignation are growing stronger in the main opposition 
 
SIPDIS 
party. There is a possibility that Tsunoda will have to make a 
decision on his course of action. 
 
At his press conference on Jan. 23, Tsunoda rejected his involvement 
in the mishandling of the political funds and expressed his 
intention not to step down from his post. In a Minshuto executive 
meeting this morning, however, the party's Upper House Chairman 
Azuma Koshiishi said: "I received a telephone call from Mr. Tsunoda 
this morning and he told me that he would like to reconsider the 
matter since his explanation (on the 23rd) was insufficient." Former 
President Katsuya Okada sough strict response, saying, "Minshuto as 
a party should take responsibility for the matter." 
 
(3) Former Agriculture Minister Norota recorded office expenses in 
political funds reports although he used secretary's home as fund 
management office; Defense Minister Kyuma failed to notify 
relocations of political organizations 
 
MAINICHI (Page 1) (Excerpts) 
Evening, January 25, 2007 
 
The political fund management organization of Hosei Norota, former 
agriculture, forestry and fisheries minister, reported a total of 
10.97 million yen as office expenses in Norota's political funds 
reports in 2003, 2004 and 2005 although the organization used the 
house of a private secretary to Norota as the office, the Mainichi 
has learned. 
 
Three political organizations of Defense Ministry Fumio Kyuma are 
not located at the addresses written in Kyuma's reports on political 
funds to the government. The organizations therefore corrected the 
political funds reports. 
 
It was reported that Kyuma's political organizations headed by his 
incumbent and former secretaries -- Tokyo Kyueikai, Kensei Konwakai, 
and Tatsumikai -- had their offices on the sixth floor of a building 
in Minato Ward, Tokyo, and a total of office expenses in 2005 was 
6.6 million yen. However, the three organizations were not located 
in that building. Kyuma's office explained: "Tokyo Kyueikai and 
Tatsumikai were relocated to Naka-Ikegami in Ota Ward and Kensei 
Konwakai to Akasaka, Minato Ward in June 2004. But we failed to 
report them." The three Kyuma's political organizations then 
corrected their political funds reports in mid-January this year. 
 
In a cabinet meeting today, Kyuma admitted to the failure of 
notifying the relocations of the three organizations. He then 
 
TOKYO 00000352  004.2 OF 008 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 01//07 
 
stated: "I have no connection with Kensei Konwakai. Since I don't 
head the remaining two organizations, their representatives are to 
blame." 
 
(4) Cuts in medical equipment expenses: Narrow differences between 
domestic and foreign prices 
 
YOMIURI (Page 11) (Abridged) 
January 25, 2007 
 
Medical service fees were reduced by 3.16% last April as part of 
efforts to constrain medical outlays. About 32 trillion yen is spent 
as medical expenses annually in Japan, almost the same level as 
earnings by the pachinko industry. If the government really wants to 
hold down medical spending, it should try to reduce spending on 
medical equipment more drastically, because there are wide 
differences between domestic and foreign prices of such products. 
 
In Japan, technical fees in treating illnesses have been kept low, 
but the cost of equipment and other medical materials are abnormally 
higher than in other countries. For instance, in the case of an 
operation for appendicitis in Japan, it costs about 380,000 yen with 
a stay of seven days in a hospital, but it costs 2.44 million yen 
with a one-day hospital stay in New York and 480,000 yen (with a 
four-day hospitalization) in Beijing. 
 
Meanwhile, the price of a cardiac pacemaker is three to four times 
higher in Japan than in any other foreign country. In Japan, a 
pacemaker is priced at 1.16 to 1.48 million yen (as of 2004). In 
China, though, the price of an imported product is 800,000 to 
1,000,000 yen and that of a domestic product is 400,000 to 600,000 
yen. A balloon catheter for heart attack treatment is priced at 
170,000 to 190,000 yen in Japan (2004) but at 70,000 to 80,000 yen 
in the US. The price of a contact lens for cataract patients is 
52,000 yen in Japan but 14,000 yen in the US. The price of a 
coronary artery stent is 338,000 in Japan and 64,000 to 105,000 yen 
(in 2001) in Britain. Treatment costs for coronary artery stent 
total 3,688,200 yen in the US and 1,740,750 yen in Japan. However, 
material costs are lower in the US than in Japan. The proportion of 
the material cost to the total treatment fee for coronary artery 
stent in Japan is 58% and that of the operation cost is 14%. In the 
case of artificial joint replacement, the material cost and the 
operation fee account for 40 to 50% and 15 to 17%, respectively. 
 
A certain medical product manufacturer sells its products overseas 
for only one-fifth the prices in Japan. For example, an artificial 
lung is priced at 1,620 dollars in Japan but 210 to 1,000 dollars in 
Asia, 220 to 950 dollars in the US, and 240 to 500 dollars in 
Europe. 
 
To trim medical spending, the government should publicize the 
results of international comparison between domestic and foreign 
material prices and reset proper prices. Of total medical 
expenditures, material expenses account for about 60%. If the prices 
were halved, approximately one trillion yen could be squeezed out. 
 
(5) Paratroop training planned at Kadena 
 
OKINAWA TIMES (Page 1) (Full) 
January 25, 2007 
 
The US Air Force's 18th Wing at Kadena Air Base is planning to 
conduct a parachute drill tomorrow for its rescue troopers, sources 
 
TOKYO 00000352  005.2 OF 008 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 01//07 
 
familiar with the plan revealed yesterday. The paradrop training is 
planned for six troops only, and it is believed to be a heliborne 
drill. The Defense Facilities Administration Agency's Naha bureau 
and the Foreign Ministry's Okinawa office will brief the authorities 
of Okinawa Prefecture, Kadena Town, Okinawa City, and Chatan Town 
today on an outline of the planned parachute drill. The US military 
last conducted such paradrop training eight years ago at the base, 
which is close to populated areas. Local residents are likely to 
oppose the planned drill. The prefectural government will consider 
taking action to ask the US military not to carry it out. 
 
The United States has told Japan that the US Air Force wants to 
routinize paradrop training at Kadena Air Base not only for its 
troops but also for other US servicemen, According to the sources. 
The US military has been unable to carry out its scheduled parachute 
drills at Iejima airfield for weather reasons, the sources said. The 
US military will likely continue paradrop training at Kadena. 
 
The training is scheduled to be conducted tomorrow afternoon. It 
simulates a rescue operation for one who fell into the sea, and a 
rescue team will land near the base runways from a helicopter over 
the base. The drill will likely be rescheduled if the weather does 
not permit. 
 
Normally, the US military conducts parachute drills at Iejima 
airfield. Parachute drills were conducted at Kadena Air Base in May 
1998 and in April 1999. Since then, the US military has conducted no 
parachute drills at the base. 
 
According to the sources, weather conditions around Iejima-an island 
lying off the northwestern part of Okinawa's main island-has not 
been stable enough to conduct a parachute drill. The training this 
time at Kadena is aimed at making up for US military personnel's 
lack of paradrop training to keep them qualified. 
 
The US military used to carry out parachute drills at Yomitan 
airfield. According to the prefectural government, the US military 
conducted a parachute drill there in 1965 and a local schoolgirl was 
killed under a paradropped trailer that fell near a civilian home. 
 
There were other accidents, such as timber and iron debris dropping 
on residential or farmland areas. Furthermore, paratroopers landed 
in private gardens. 
 
Meanwhile, Japan and the United States finalized a report released 
by their intergovernmental joint committee in 1996, incorporating an 
agreement to move parachute drills to Iejima airfield. According to 
local village authorities, the US military conducts one or two 
drills each month at Iejima airfield. In October last year, one of 
those in that drill landed on a field outside the base fence. 
 
An Okinawa prefectural government official said: "We have been 
calling for the US military to better use Kadena Air Base, but they 
are deploying the F-22A Raptor to the base instead of alleviating 
our base-hosting burden. They are so inconsiderate of the local 
communities. They are too insensitive. We have no choice but to take 
action as we did eight years ago (to call for the US military to 
suspend the planned training)." 
 
(6) Japan, US to test IC tag-based traceability system for freight 
containers as security measure 
 
NIKKEI Evening (Page 3) (Full) 
 
TOKYO 00000352  006.2 OF 008 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 01//07 
 
January 24, 2007 
 
The Ministry of Land, Infrastructure and Transport will start in 
March the test of an IC tag-based traceability system by installing 
tags on freight containers at Yokohama Port in cooperation with the 
United States Department of Homeland Security. This is a security 
system that the US is planning to introduce, and a joint test of the 
system will be carried out by Japan and the US for the first time. 
If the system is proved effective, it might be adopted as an 
international standard for managing containerized cargos. 
 
The test will be conducted on a route between Yokohama Port and the 
West Coast. IC tags equipped with the function of the global 
positioning system (GPS) will be installed on 50 to 100 freight 
containers. These containers will be transported in five to seven 
shipments. The test is aimed to check if the containers at sea or on 
the group are accurately and promptly positioned, as well as to 
check whether piled containers are identified. The durability of IC 
tags will also be tested. The test period will be three to four 
weeks until the containers arrive in Chicago by railway. 
 
The US will provide such equipment as IC tags and antennas. The 
Transport Ministry and the Yokohama Harbor Transportation 
Association will cooperate in coordination with the 
Singapore-affiliated leading container transportation firm APL of 
the US and in installation work. 
 
Since the terrorist attacks occurred in the US in September 2001, 
countries have tightened measures to secure containers across the 
world. For instance, the US requires exporting countries to report 
on the contents of cargos 24 hours before ship departure. In the 
private sector, the ECP Global, a group promoting IC tag 
standardization in Europe, has taken the lead in working out 
international standards. Nippon Yusen K.K. and other companies will 
soon carry out a test on a route between Hong Kong and Tokyo. 
 
(7) TOP HEADLINES 
 
Asahi: 
Bills amending three education laws to be submitted to Diet 
 
Mainichi & Yomiuri: 
Survey finds 2.2 billion yen in school lunch fees unpaid 
 
Nihon Keizai: 
Ricoh to acquire IBM digital business printer operation to become 
top of world 
 
Sankei: 
Calls growing in ruling parties for putting off plan for unifying 
pension systems, with eye on Upper House election 
 
Tokyo Shimbun: 
LDP to revise law to require receipts for office expenses worth more 
than 50,000 yen 
 
Akahata: 
Survey: Nonpermanent employees have more than one job due to 
impoverished state 
 
(8) EDITORIALS 
 
Asahi: 
 
TOKYO 00000352  007.2 OF 008 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 01//07 
 
(1) Regular Diet session: Confidence in politics called into 
question 
(2) Bush's State of the Union speech: Watch the documentary film "An 
Inconvenient Truth" 
 
Mainichi: 
(1) Education panel's proposals: Don't be in a rush to reform the 
education system 
(2) State of the Union address: No way in sight for overcoming 
crisis 
 
Yomiuri: 
(1) Education reform panel report deserves full marks 
(2) President Bush's State of the Union address: Iraqi burden casts 
dark shadow over North Korea's nuclear ambitions 
 
Nihon Keizai: 
(1) Future of schools cannot be seen in education panel's report 
(2) State of the Union address reflects US fatigue 
 
Sankei: 
(1) Destruction of satellite: Looking at China's real intention 
(2) Bid-rigging on subway project: Stricter punishments necessary 
 
Tokyo Shimbun: 
(1) Prime Minister Abe's view reflected in education reform report 
(2) Bush's State of the Union speech: Stagnation will continue for 
two more years 
 
Akahata: 
US State of the Union address: No reflection on mistakes in Iraq 
 
(9) Prime Minister's schedule, January 24 
 
NIHON KEIZAI (Page 2)  (Full) 
January 25, 2007 
 
09:31 
Overseas economic cooperation conference at the Kantei. 
 
10:30 
Met with Koki Chuma, head of LDP Administrative Reform Promotion 
Headquarters and chief of the Secretariat Yoichi Miyazawa. Then had 
telephone conversation with Mongolian President Enkhbayar. Assistant 
Deputy Chief Cabinet Secretary Ando and MOFA Foreign Policy Bureau 
Director General Kawai were present. 
 
11:31 
Met members of the 16th Winter Olympic team, an international sports 
event for the deaf. Then met with Special Advisor to the Prime 
Minister Emote. 
 
11:59 
Met with former Prime Minister Nakasone. 
 
14:00 
Met with Diet Policy Committee Chairman Nikai and New Komeito Diet 
Policy Chairman Urushibara, followed by Chief Cabinet Secretary 
Shiozaki and Assistant Deputy Chief Cabinet Secretary Saka. 
 
14:31 
Educational Revitalization Conference. Then met with Education and 
Science Minister Ibuki and Shiozaki. 
 
TOKYO 00000352  008 OF 008 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 01//07 
 
 
15:16 
Videotaping of Live Talk Kantei for the government's Internet TV 
along with Educational Revitalization Council Chairman Ryoji Noyori 
and Special Advisor to the Prime Minister Yamatani. 
 
16:00 
Met with Agriculture Minister Matsuoka and METI Minister Amari. Then 
Latin American ambassadorial meeting. 
 
17:44 
New year's meeting hosted by the People's Political Association at 
Hotel New Ohtani. 
 
18:36 
Arrived at the Kantei. 
 
19:19 
Greeting exchange meeting of the Commercial Broadcasting Commentary 
Research Group at the Japan Press Center at Uchisaiwai-cho 
 
19:51 
Arrived at the official residence. 
 
SCHIEFFER